Introduction to Public Finance and Government Interventions Quiz
12 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What are the two main tools of fiscal policy?

  • Interest rates and money supply
  • Taxation and subsidies
  • Monopolies and public goods
  • Government spending and taxation (correct)

    • Which of the following is NOT a type of market failure?

  • Public goods
  • Information asymmetry
  • Inflation (correct)
  • Externalities

    • Which of the following is a strategy for pollution control?

  • Subsidies (correct)
  • Direct taxes
  • Public goods
  • Monopolies

    • What is fiscal federalism?

    <p>Fiscal relations between different levels of government</p> Signup and view all the answers

    What is the main objective of a government budget?

    <p>All of the above</p> Signup and view all the answers

    Which of the following is a major source of government revenue?

    <p>Direct taxes</p> Signup and view all the answers

    What is the primary goal of resource allocation?

    <p>To maximize social welfare</p> Signup and view all the answers

    What is a characteristic of public goods?

    <p>They are difficult to provide through markets</p> Signup and view all the answers

    What is an example of a negative externality?

    <p>Pollution</p> Signup and view all the answers

    What is an objective of government policies in the economy?

    <p>To promote growth, reduce inequality, and ensure stability</p> Signup and view all the answers

    What is a strategy for efficient allocation of resources?

    <p>All of the above</p> Signup and view all the answers

    What can cause market failures?

    <p>Monopolies and externalities</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser